Dynamic pricing and learning with competition: insights from the dynamic pricing challenge at the 2017 INFORMS RM & pricing conference

Ruben van de Geer; Arnoud V. den Boer; Christopher Bayliss; Christine S.M. Currie; Andria Ellina; Malte Esders; Alwin Haensel; Xiao Lei; Kyle D.S. Maclean; Antonio Martinez-Sykora; Asbjørn Nilsen Riseth; Fredrik Ødegaard; Simos Zachariades

doi:10.1057/s41272-018-00164-4

Dynamic pricing and learning with competition: insights from the dynamic pricing challenge at the 2017 INFORMS RM & pricing conference

Ruben van de Geer^*
, Arnoud V. den Boer
, Christopher Bayliss
, Christine S.M. Currie
, Andria Ellina
, Malte Esders
, Alwin Haensel
, Xiao Lei
, Kyle D.S. Maclean
, Antonio Martinez-Sykora
, Asbjørn Nilsen Riseth
, Fredrik Ødegaard
, Simos Zachariades

^*Corresponding author for this work

Mathematics

Research output: Contribution to Journal › Article › Academic › peer-review

Abstract

This paper presents the results of the Dynamic Pricing Challenge, held on the occasion of the 17th INFORMS Revenue Management and Pricing Section Conference on June 29–30, 2017 in Amsterdam, The Netherlands. For this challenge, participants submitted algorithms for pricing and demand learning of which the numerical performance was analyzed in simulated market environments. This allows consideration of market dynamics that are not analytically tractable or can not be empirically analyzed due to practical complications. Our findings implicate that the relative performance of algorithms varies substantially across different market dynamics, which confirms the intrinsic complexity of pricing and learning in the presence of competition.

Original language	English
Pages (from-to)	185–203
Number of pages	19
Journal	Journal of Revenue and Pricing Management
Volume	18
Issue number	3
Early online date	16 Oct 2018
DOIs	https://doi.org/10.1057/s41272-018-00164-4
Publication status	Published - 1 Jun 2019

Funding

Acknowledgements Chris Bayliss and Christine Currie were funded by the EPSRC under Grant Number EP/N006461/1. Andria Ellina and Simos Zachariades were part funded by EPSRC as part of their PhD studentships. Asbjørn Nilsen Riseth was partially funded by EPSRC Grant EP/L015803/1.

Funders	Funder number
Engineering and Physical Sciences Research Council	EP/N006461/1, EP/L015803/1

Keywords

Competition
Dynamic pricing
Learning
Numerical performance

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10.1057/s41272-018-00164-4

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van de Geer, R., den Boer, A. V., Bayliss, C., Currie, C. S. M., Ellina, A., Esders, M., Haensel, A., Lei, X., Maclean, K. D. S., Martinez-Sykora, A., Riseth, A. N., Ødegaard, F., & Zachariades, S. (2019). Dynamic pricing and learning with competition: insights from the dynamic pricing challenge at the 2017 INFORMS RM & pricing conference. Journal of Revenue and Pricing Management, 18(3), 185–203. https://doi.org/10.1057/s41272-018-00164-4

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title = "Dynamic pricing and learning with competition: insights from the dynamic pricing challenge at the 2017 INFORMS RM \& pricing conference",

abstract = "This paper presents the results of the Dynamic Pricing Challenge, held on the occasion of the 17th INFORMS Revenue Management and Pricing Section Conference on June 29–30, 2017 in Amsterdam, The Netherlands. For this challenge, participants submitted algorithms for pricing and demand learning of which the numerical performance was analyzed in simulated market environments. This allows consideration of market dynamics that are not analytically tractable or can not be empirically analyzed due to practical complications. Our findings implicate that the relative performance of algorithms varies substantially across different market dynamics, which confirms the intrinsic complexity of pricing and learning in the presence of competition.",

keywords = "Competition, Dynamic pricing, Learning, Numerical performance",

author = "\{van de Geer\}, Ruben and \{den Boer\}, \{Arnoud V.\} and Christopher Bayliss and Currie, \{Christine S.M.\} and Andria Ellina and Malte Esders and Alwin Haensel and Xiao Lei and Maclean, \{Kyle D.S.\} and Antonio Martinez-Sykora and Riseth, \{Asbj{\o}rn Nilsen\} and Fredrik {\O}degaard and Simos Zachariades",

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doi = "10.1057/s41272-018-00164-4",

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van de Geer, R, den Boer, AV, Bayliss, C, Currie, CSM, Ellina, A, Esders, M, Haensel, A, Lei, X, Maclean, KDS, Martinez-Sykora, A, Riseth, AN, Ødegaard, F & Zachariades, S 2019, 'Dynamic pricing and learning with competition: insights from the dynamic pricing challenge at the 2017 INFORMS RM & pricing conference', Journal of Revenue and Pricing Management, vol. 18, no. 3, pp. 185–203. https://doi.org/10.1057/s41272-018-00164-4

Dynamic pricing and learning with competition: insights from the dynamic pricing challenge at the 2017 INFORMS RM & pricing conference. / van de Geer, Ruben; den Boer, Arnoud V.; Bayliss, Christopher et al.
In: Journal of Revenue and Pricing Management, Vol. 18, No. 3, 01.06.2019, p. 185–203.

Research output: Contribution to Journal › Article › Academic › peer-review

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Dynamic pricing and learning with competition: insights from the dynamic pricing challenge at the 2017 INFORMS RM & pricing conference

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Keywords

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